Welcome to our dedicated page for 22nd Century Group news (Ticker: XXII), a resource for investors and traders seeking the latest updates and insights on 22nd Century Group stock.
22nd Century Group, Inc. (NASDAQ: XXII) is a pioneering agricultural biotechnology company based in the United States. The company specializes in reducing the harms associated with smoking through advanced plant science technologies. 22nd Century leverages proprietary technology to precisely control the levels of nicotine in tobacco plants, making them significantly lower or higher through genetic engineering and selective breeding.
22nd Century operates primarily in the tobacco sector, commercializing its proprietary very low nicotine content (VLNC) tobacco plants and cigarette products. These products include reduced nicotine tobacco cigarettes marketed under the brand VLN®, which have up to 97% less nicotine than traditional cigarettes. VLN® received the first and only FDA Modified Risk Tobacco Product (MRTP) authorization for a combustible cigarette in December 2021, underscoring its breakthrough in the industry.
The company also has a significant footprint in the cannabis sector, applying its technology to control cannabinoid levels in cannabis plants, aiming to optimize health and wellness benefits. The company's wholly-owned subsidiaries, Goodrich Tobacco Company and Hercules Pharmaceuticals, focus on premium tobacco products and smoking cessation aids, respectively.
Recent strategic moves include restructuring to streamline operations and improve financial performance. The company has reduced cash use from $15 million a quarter to under $4 million projected for the first quarter of 2024. Recent business highlights feature new contract manufacturing agreements and expanded product lines, such as the Pinnacle brand cigarettes and cigarillos. These efforts are expected to propel 22nd Century towards cash-positive operations by Q1 2025.
Financially, the company has taken steps to bolster its balance sheet, announcing multiple equity transactions to reduce long-term and short-term debt. As of December 31, 2023, the company held $2.1 million in cash, with subsequent capital infusions improving liquidity. Revenue is majorly derived from its tobacco segment, with research cigarettes sold under the SPECTRUM brand adding to commercial activities.
For investors, 22nd Century's commitment to innovation in plant biotechnology presents a compelling case for growth. The company continues to host quarterly earnings calls, with the latest results showing promising advances in both financial metrics and strategic goals. Learn more at xxiicentury.com
22nd Century Group, Inc. (Nasdaq: XXII) announced a groundbreaking three-year agreement with Cookies, the leading global cannabis brand. This partnership creates a comprehensive CDMO+D solution, aimed at meeting the rising demand for CBD products. It allows 22nd Century to utilize its entire value chain, from receptor science to retail distribution. The deal is expected to significantly boost Cookies’ non-Delta-9 THC product sales, with 22nd Century's CPG sales team targeting approximately 60,000 retail outlets. This collaboration is poised to enhance both companies' market presence.
22nd Century Group, Inc. (Nasdaq: XXII) has accelerated the launch of its VLN® reduced nicotine cigarettes, securing key national distribution agreements in Texas, California, and Florida. The company reported Q4 2022 net revenues of $19.2 million, a 141% increase year-over-year. Despite incurring a net loss of $26.3 million, the strong revenue from both tobacco and hemp/cannabis businesses signals potential cash-positive operations by mid-2024. A new $21.1 million senior credit facility will enhance working capital to support growth. The company is leveraging high consumer demand and expanding its market reach through strategic partnerships, intending to penetrate in up to 18 states by year-end 2023.
22nd Century Group, Inc. (Nasdaq: XXII) announced a $21 million senior secured debenture financing to support increased working capital needs for its VLN® and GVB business lines. The financing will bear cash interest at 7% per annum and includes early redemption options. The company aims to launch VLN® in up to 18 states by 2023 and anticipates significant revenue growth. GVB's customer demand for CBD products continues to rise, solidifying its market position in North America.
22nd Century Group (Nasdaq: XXII) will participate in one-on-one meetings at the 35th Annual Roth Conference from March 12-14, 2023, in Orange County, California. This leading biotechnology company focuses on reduced nicotine tobacco and advanced plant technologies. Investors interested in meetings can contact their Roth representative or reach out to Matt Kreps at mkreps@xxiicentury.com.
22nd Century has pioneered proprietary reduced nicotine content tobacco and received the first FDA MRTP authorization for a combustible cigarette in December 2021, emphasizing its commitment to tobacco harm reduction.
22nd Century Group, Inc. (Nasdaq: XXII) announced it will host a live webcast on March 9, 2023, at 10:00 AM ET to discuss its 2022 fourth quarter and full year results, which will be released earlier that day at 6:00 AM ET. CEO James A. Mish and other executives will review the company's financial performance and advancements in its three business franchises. The event will include a Q&A session for research analysts. Investors can access the live and archived webcast on the company's Investor Relations website.
22nd Century Group has announced a significant seed cultivation initiative aimed at producing reduced nicotine content tobacco to meet New Zealand's new tobacco regulations. The project targets the production of up to 2 billion cigarettes, matching the country's annual consumption. The company's VLN® cigarettes, which contain 95% less nicotine than standard options, are set to become a foundational element of public health policies in New Zealand and beyond. The initiative aligns with the government’s Smokefree Aotearoa 2025 plan, positioning 22nd Century as a key player in the global tobacco harm reduction effort.
22nd Century Group, Inc. has launched VLN® cigarettes in Colorado, designed for adults aiming to reduce their nicotine intake. A recent survey reveals that 74% of Colorado smokers wish to quit, with 87% believing that cutting back is vital. VLN® contains 95% less nicotine than traditional cigarettes and has received FDA’s Modified Risk Tobacco Product designation. This initiative aligns with the FDA's regulatory focus on nicotine reduction and could cater to the demand for less addictive tobacco products. The survey indicates potential market interest, particularly since Colorado has reduced taxes on such products.
22nd Century Group has announced the acquisition of RX Pharmatech Ltd, enhancing its foothold in the U.K. and EU cannabinoid markets. The deal includes a $650,000 upfront payment and a three-year equity earn-out based on revenue milestones. This acquisition positions 22nd Century as a leader in the U.K. consumer products isolate market, projected to reach $1.26 billion by 2025. RXP's 1,276 approved novel food applications streamline entry into these markets, aligning with regulatory trends. The integration is expected to improve revenue and gross margins through operational efficiencies.
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